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Knight Therapeutics Inc T.GUD

Alternate Symbol(s):  KHTRF

Knight Therapeutics Inc. is a specialty pharmaceutical company. The Company’s principal business activity is developing, acquiring, in-licensing, out-licensing, manufacturing, marketing and distributing pharmaceutical products in Canada, Latin America and select international markets. It finances other life sciences companies and secures product distribution rights for Canada and select international markets. The Company invests in life sciences venture capital funds whereby the Company may receive preferential access to healthcare products for Canada and select international markets. It develops pharmaceutical products, including those to treat neglected tropical and rare pediatric diseases. The portfolio consists of pharmaceutical products with molecules and includes both in-licensed products such as Lenvima, Cresemba, Halaven, Trelstar, Akynzeo, Ambisome, Minjuvi, Imvexxy as well as products owned by Knight such as Exelon and Impavido.


TSX:GUD - Post by User

Comment by gudisgoodon May 10, 2024 10:10am
198 Views
Post# 36033378

RE:RE:Sorry...

RE:RE:Sorry...Yes, although we're getting close to a point where the fund investments can no longer be classified as having done well. It's been several years since they were made, the money will be tied there for a fair amount of time, and the market value keeps decreasing. Hopefully they turn around, but we've received essentially no product rights from those funds (which was a part of the rationale initially), and now the financial returns look increasingly less attractive. The decrease this quarter was quite heavy. But, as mentioned, they can still turn around. Personally, without knowing too much about them, I'd greatly prefer to have that capital in cash (earning 5% while waiting for opportunities) than in those funds.

While the stock price has increased lately, calling this "excitement" is quite a hyperbole in my opinion. The company generates heavy EBITDA relative to its enterprise value, has attractive growth prospects, and a strong balance sheet with rational management. We're at a point where this year the volume of business remains fairly stable, but next year we'll enter the second year for Minjuvi and Imvexxy, plus (the last time I counted) nine new product/country launches. Furthermore, all the recent product deals that hopefully materialize 2-3 years from now have strong potential (Qelbree, IPX203 and Jornay). And the markets we are in are expected to grow at a nice rate as well. So, we're entering a new chapter in Knight's journey.

A small bonus would be to see Argentina doing better but it's too early to say if that happens.
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